Senate Finance Committee Chairman Eric Tarr, right, said Sunday the West Virginia Legislature and state officials need a full investigation of funds used by West Virginia Voluntary Organizations Active in Disaster. (Photo by Steven Allen Adams)

CHARLESTON — A West Virginia lawmaker called for an investigation and audit of a non-profit organization often activated for flood relief in the state.

During a meeting Sunday afternoon of the Joint Legislative Committee on Flooding, Senate Finance Committee chairman Eric Tarr called for the Legislature’s Commission on Special Investigations, the criminal investigation arm of the Legislature, as well as the Legislative Auditor and State Auditor’s office to look into several allegations raised against West Virginia Voluntary Organizations Active in Disaster.

“I’m not convinced that the funds that went through VOAD, and I’m not sure how much of that would have been state dollars with just the recent appropriations, let alone what’s happened since 2016, were used appropriately,” said Tarr, R-Putnam.

The committee, meeting on the first day of January legislative interim meetings at the Capitol in Charleston prior to the start of the 2024 legislative session Wednesday, heard from VOAD Executive Director Jenny Gannaway.

Tarr asked Gannaway several questions under oath about actions taken by Gannaway and VOAD staff. These actions include the hiring of family members for VOAD by Gannaway and others. Gannaway admitted to hiring her brother, her great niece and great nephew-in-law. Gannaway said the hires did not require approval of VOAD’s board, but that Gannaway and other employees did not directly supervise employed family members.

Executive Director Jenny Gannaway of the West Virginia Voluntary Organizations Active in Disaster admitted under oath Sunday before lawmakers that she hired relatives, took donated items for personal use, and benefited from a bonus paid out of federal PPP loan funds. (Photo by Steven Allen Adams)

“It was during the COVID time, and it was very hard for us to get employees,” Gannaway said. “It wasn’t just my family. We hired (family members) of several of our other employees…it was hard to find people who wanted to come out and work. Looking back, that is probably something I would never do again, but at that time when we had to get things done, we felt like that would be a way to do it.”

Gannaway admitted under questioning by Tarr to taking items donated to VOAD for personal use, though she claimed she would make monetary and item donations to VOAD to offset taking the other donated items. Gannaway said any item she took for herself has already been given away. This included taking a $600 fire pit donated by Lowes and giving it to her daughter, though Gannaway said the fire pit has since been donated.

“We had permission to take donations for items we could not give out to flood survivors,” Gannaway said. “I gave large donations for any items I took that I may have given to someone.”

Gannaway confirmed to Tarr that a VOAD employee used a rental truck paid for by VOAD to transport items donated to VOAD from VOAD’S warehouse in Quincy to her home in Roanoke, including a patio set, flower boxes, a fire pit and a smart refrigerator valued at approximately $4,000.

“The rental truck had been leased by West Virginia VOAD and we did use that truck, but also I did pay him to do what he done out of my own pocket.”

According to Gannaway, VOAD settled a claim through the state’s Board of Risk and Insurance Management $50,000 after it was discovered that a former employee embezzled money from the organization. According to WCHS-TV, former VOAD chief financial officer Benjamin Cisco admitted to embezzling more than $870,000 from the organization beginning in 2020.

Tarr also asked about the use of federal Paycheck Protection Program loans for bonuses for Gannaway and others. According to Tarr, VOAD received approximately $400,000 in PPP loans, meant to help retain and pay workers during COVID-19 shutdowns in the spring of 2020.

Gannaway said much of the PPP funding was returned to the federal government, but confirmed that PPP helped provide bonuses, including for herself. It is unclear how much was paid out in these bonuses, called Hero Bonuses, but according to one letter read by Tarr from Gannaway to a VOAD employee, that worker received more than $7,000.

“It was told to me by our CFO at that time that he cleared this with our (certified public accountant) and our auditor,” Gannaway said, “We had had employees working weekends and were not paid for those times.”

According to Tarr, VOAD received approximately $896,000 through the state Department of Commerce from West Virginia’s nearly $149 million in Community Development Block Grant-Disaster Recovery dollars stemming from the 2016 flooding in southern and central West Virginia. VOAD has also received funding as a sub-recipient through a Disaster Case Management Program grant for approximately $1.1 million between 2021 and 2023.

Kanawha County Commissioner Ben Salango, in a December 2023 story by WOWK-TV, said that VOAD is under federal investigation, though VOAD has denied this. The Kanawha County commissioner rescinded an earlier vote to give VOAD $50,000 for private bridge repairs after the organization asked to use the funds for other purposes without identifying what those purposes would be. Tarr said Sunday that the state needs to also look at whether taxpayer dollars should be pulled from VOAD.

“I think this matter should be referred to the (Commission on Special Investigations),” Tarr said Those state dollars that have been involved that were directly related to Ms. Gannaway’s supervision and probably the board as a whole also should be referred to the State Auditor, because I’m pretty sure the State Auditor has not had a chance to look at especially these most recent funds; and also to the Legislative Auditor.”

Steven Allen Adams can be reached at sadams@newsandsentinel.com.